Cryptocurrency investors have developed their own distinct slang over the years. Some terms are colorful, some are downright strange.
You might’ve come across terms like “rekt,” a shorthand for “wrecked,” used when someone suffers a particularly brutal loss. Or “HODL,” which originated from a typo of “hold” and has since become a rallying cry for refusing to sell during crashes.
But when it comes to understanding the broader crypto market cycle, three terms matter most: bull, bear and crab markets. Bulls and bears are borrowed from the stock market, but “crab market” is crypto’s own creation.
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A crab market refers to periods where price action moves sideways with high volatility, bouncing between resistance and support without making meaningful progress in either direction.
That’s largely what Bitcoin’s performance has looked like so far this year. After an initial surge, prices have remained stuck in a tight channel around the $100,000 mark — no clear breakout, just a holding pattern with plenty of sharp swings.
Fortunately, the rise of newer and more advanced cryptocurrency exchange-traded funds (ETFs) has given investors the ability to fine-tune their strategies to match these kinds of market conditions.
Some of these ETFs use options to generate high yields in range-bound, volatile environments. Others aim to hedge against downside risk while still allowing for some limited upside participation.
Here are seven cryptocurrency ETFs that could help investors navigate the current cycle:
| ETF | Expense ratio |
| iShares Bitcoin Trust ETF (ticker: IBIT) | 0.25% |
| ProShares Bitcoin ETF (BITO) | 0.95% |
| Global X Bitcoin Covered Call ETF (BCCC) | 0.65%* |
| Amplify Transformational Data Sharing ETF (BLOK) | 0.73% |
| Roundhill Bitcoin Covered Call Strategy ETF (YBTC) | 0.96% |
| Calamos Bitcoin 80 Series Structured Alt Protection ETF — April (CBTA) | 0.69% |
| Calamos Bitcoin Structured Alt Protection ETF — January (CBOJ) | 0.69% |
*BCCC characterizes its fee as a “management fee.”
iShares Bitcoin Trust ETF (IBIT)
“Looking back at 2016, there was only one option to directly hold Bitcoin within your retirement account,” says Chris Kline, chief operating officer and co-founder of Bitcoin IRA. “Now, there are routes to hold crypto assets in nearly every type of financial account, and the market is better for it.” For example, the largest Bitcoin ETF by assets, IBIT, can be held inside a Roth IRA.
IBIT’s standout feature is the availability of an options chain, which allows for advanced risk management strategies. For example, an investor anticipating flat Bitcoin prices in the near term could sell an IBIT covered call to receive an immediate cash premium. Investors can also buy IBIT put options to protect their downside should Bitcoin suffer a sharp reversal. IBIT charges a 0.25% expense ratio.
ProShares Bitcoin ETF (BITO)
“The Trump administration’s continued warming towards crypto has created a seismic shift forward for the industry,” Kline explains. “Strategic appointments of crypto-forward advocates, including Paul Atkins to lead the Securities and Exchange Commission and David Sacks as the inaugural artificial intelligence and crypto czar, underscore a deliberate recalibration of the fintech landscape.”
BITO is one of the older and more established ways to express a bullish view on Bitcoin. Rather than owning spot Bitcoin, BITO provides synthetic exposure by investing in CME-traded Bitcoin futures contracts. Because BITO realizes gains and losses through active futures trading, it’s required to distribute taxable income each year. Right now, that translates into a 57.7% trailing 12-month yield.
Global X Bitcoin Covered Call ETF (BCCC)
“As observed in 2024, blockchain and crypto-related stocks — such as miners and crypto exchanges — typically offer higher-beta trades in a favorable crypto market environment or ahead of major events,” says Ido Caspi, research analyst at Global X ETFs. “The influx of institutional capital into Bitcoin, Ethereum and other tokens is also expected to increase crypto activity and, consequently, transaction fees.”
In a crab market, the stocks of crypto-involved companies can stagnate. To address this shortcoming, Global X ETFs recently launched BCCC. This ETF sells covered calls on the VanEck Bitcoin ETF (HODL) and the Cboe Bitcoin U.S. ETF Index (CBTX). As a newer ETF, the yield of BCCC is yet to be determined, but will likely be high, potentially rivaling older competitors like BITO. BCCC will also pay on a weekly basis.
[See: What’s the Best Cryptocurrency to Buy? 6 Contenders]
Amplify Transformational Data Sharing ETF (BLOK)
“BLOK provides investors with dynamic exposure to the blockchain economy through active management,” explains Dan Weiskopf, senior portfolio manager at Tidal Financial Group and co-portfolio manager for BLOK. “Rather than tracking a passive index, the ETF identifies and adjusts its portfolio based on real-time blockchain adoption, regulation and innovation developments.”
BLOK’s current basket consists of 54 crypto and blockchain companies, including Coinbase Global Inc. (COIN), Strategy Inc. (MSTR) and Block Inc. (XYZ). “As crypto adoption reaccelerates and stablecoin legislation advances in the U.S., BLOK remains positioned at the forefront,” says Michael Venuto, chief investment officer and co-founder of Tidal Financial Group and co-portfolio manager for BLOK.
Roundhill Bitcoin Covered Call Strategy ETF (YBTC)
BCCC’s main competitor is YBTC, which has been around since January 2024 and currently sits at around $230 million in assets. This Bitcoin covered call ETF uses a combination of IBIT options and CBTX index options to deliver a high 31% distribution yield. It was also one of the first U.S.-listed ETFs to pay distributions on a weekly basis. However, it does charge a fairly high 0.96% expense ratio.
“YBTC offers the potential for high income, as it generates income through a covered call strategy on Bitcoin,” says Dave Mazza, CEO of Roundhill Investments. “This ETF provides upside exposure to Bitcoin, subject to a weekly cap, offering a unique blend of income generation and Bitcoin exposure without the complexities of direct Bitcoin investment or the hassle of trading options directly.”
Calamos Bitcoin 80 Series Structured Alt Protection ETF — April (CBTA)
“There is a mismatch between the percentage of financial advisors offering exposure to Bitcoin and the percentage of advisors being asked about Bitcoin,” says Matt Kaufman, senior vice president and global head of ETFs at Calamos Investments. “CBTA can fill that gap, giving investment advisors a tool for offering Bitcoin exposure to investors in a way that may better fit a traditional portfolio.
Unlike YBTC and BCCC, CBTA’s objective isn’t high income. Instead, the ETF uses Bitcoin-linked options to hedge downside risk at the cost of some upside appreciation. Currently, this means limiting the maximum loss to 20% over a one-year period starting April 2025, but at the cost of a 51% upside cap. This ETF may be suitable for older or beginner investors wary of Bitcoin’s historically high volatility.
Calamos Bitcoin Structured Alt Protection ETF — January (CBOJ)
“CBOJ has protected investors against a 26.6% drawdown since inception,” Kaufman notes. “Traditionally, the high volatility of Bitcoin has made it difficult to apply to a portfolio, but with our structured alt protection ETFs, advisors now have a solution that is more ‘sized’ for traditional equity replacement,” Kaufman says. If purchased at inception in January, CBOJ can fully hedge downside risk up to 100%.
The trade-off is a more severe cap on upside price appreciation. To finance the 100% downside protection over a year, CBTA’s options overlay has to sacrifice significant upside. This means investors holding CBOJ over its one-year outcome period from inception won’t see any losses, but cannot participate in net returns beyond 11%. The ETF charges a 0.69% expense ratio.
[Read: 6 of the Best AI ETFs to Buy for 2025]
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7 Best Cryptocurrency ETFs to Buy originally appeared on usnews.com
Update 06/26/25: This story was published at an earlier date and has been updated with new information.